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# Are the sales of Season Ticket's sufficient to keep Charlton Athletic FC profitable, and how might they increase their total revenue?

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Introduction

Gary Leader Economics Coursework Question: Are the sales of Season Ticket's sufficient to keep Charlton Athletic FC profitable, and how might they increase their total revenue? Introduction Question: Are the sales of Season Tickets sufficient to keep Charlton Athletic FC profitable, and how might they increase their total revenue? This is the question that I have decided to answer in my coursework. I will be looking at how Charlton Athletic is able to remain successful and still keep on generating profits (total revenue - total costs = total profits). In some cases these profits will have effects on the consumer, which in this case is the fans at the club. I will have to look at whether a rise in season ticket prices will have an effect on the number of fans still willing to buy them at the new higher price. Also I will be looking at ways in which Charlton are able to maximise their revenue to enable maximum amounts of profit to enable them to be even more successful. I will also have a look at what other sources of profit there are, for example, TV Coverage, Advertising and merchandising, aswell as other generative sources of profit. I will come to a conclusion at the end of the coursework assignment as to whether my question is true. ...read more.

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Conclusion

Cross Elasticity of Demand Cross elasticity of demand is found by dividing a percentage change in the demand for a good by the percentage change in price of a different good. However it only works if the person buying the tickets is a fan of neither club. It should determine what club is more likely to attract neutrals to come and watch. It can be used to determine whether a substitute such as Millwall would have a greater demand for tickets. Cross Elasticity of Demand = % change in the demand for a good % change in the price of a different good Millwall could be considered as a substitute to Charlton from a neutrals point of view however this could be unfair as the two clubs are in different leagues to one another, so although the cross elasticity of demand for a Millwall ticket will come out lower than Charlton's there are other decisive factors. I will show cross elasticity of demand by using Tottenham Hotspur, they are both in london and are not title challenging and have world-class players. If the cross elasticity of demand for Charlton was 3 and the price of a Tottenham ticket rose by 5% then there would be a 15% increase in demand for a Charlton ticket, therefore Charlton would attract 15% more fans to the Valley and generate more income from fans who might have been elsewhere had Charlton not offered lower ticket prices than Tottenham. ...read more.

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